Sample letter

Ask your mortgage lender to accept a full and final settlement offer of payment (joint names)

​Use this letter to help you negotiate a full and final settlement offer with your lender. This is a type of offer where you ask the lender to accept part of the amount you owe and write off the rest. You can find information about how to use this letter in our fact sheet Mortgage shortfalls.

Letter in sole names

You can choose to send a letter in your own name or in joint names. You may have a debt in joint names, or want to write to your creditors together because you have worked out a joint budget.
  • Fill in your contact details, account number and any extra information you want to include in the grey shaded areas.

  • Today’s date will be added automatically.

  • Download your letter to your computer for saving and printing by clicking on ‘Download pdf’ or ‘Download doc’ on the left.

  • Sign each letter and enclose a copy of your budget if needed.

21 September 2020

Dear Sir/Madam

Without prejudice

Account No:

We are writing about the money which you are claiming we owe on the above account.

We can confirm that we are unable to offer to pay in full what we owe.

However, we can raise £ and we want to offer this as an ex-gratia payment in full and final settlement of the account.

This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any further action to enforce or pursue this debt in any way whatsoever and that we will be released from any further liability.

We also request that, if accepted, you will make an entry on our credit reference agency file relating to the above account as ‘satisfied’ in full.

Payment can be made within of receiving your written agreement to this offer. Please indicate your preferred method of payment.

We look forward to hearing from you.

Yours faithfully